Suwon's Old City Center Regulations and Property Rights Issues—FAR Trading System as Solution

[Suwon Ilbo=Reporter Lee Min-jung] As South Korea's urban development faces the dual challenge of preserving national cultural heritage through regulation and protecting residents' property rights, a Floor Area Ratio (FAR) Trading System has emerged as a proposed solution, drawing attention.

Dr. Seo Ju-ho, Vice Director of the Hwaseong Research Society and Chair of the Gyeonggi Architects Association under the Korean Architects Association, has proposed solutions to old city center problems in his recently acquired doctoral dissertation, 'Study on Floor Area Ratio Trading System in Historic and Cultural Cities,' using the Suwon Hwaseong District as a research subject.

According to Dr. Seo, the 'FAR Trading System' is a mechanism whereby restricted floor area ratios or unused FAR in areas regulated for protecting national heritage can be sold to development areas in need of development.

As a system that trades in 'floor area ratios' rather than 'development rights,' it allows the public to purchase FAR from preservation districts when relaxing land use regulations or pursuing area development that increases development density. Dr. Seo emphasized that through the FAR Trading System, historic and cultural cities can sustainably preserve national heritage while compensating residents for property rights losses, enabling these cities to continue developing.

He first examined the 'value of transferable floor area ratio' in the Suwon Hwaseong District area. Without value in transferable FAR, the effectiveness of the 'FAR Trading System' would be weakened.

Additionally, he conducted a citizen awareness survey to determine the effects citizens believe the 'FAR Trading System' would have upon implementation.

The dissertation, which verifies results including 'value of transferable floor area ratio' and 'mediating effects of the FAR Trading System found in the citizen awareness survey,' proposes sustainable development policies for historic and cultural cities by researching the basis for implementing the 'FAR Trading System.'

Dr. Seo states that "the 'FAR Trading System' can address the issue of compensating residents' property damage without financial burden on local governments, while contributing to sustainable development of historic and cultural cities."

Research results on 'value of transferable floor area ratio' yielded substantial figures, which could serve as an effective means when establishing urban regeneration projects and redevelopment plans centered on Suwon's old city center.

He also stated that empirical verification confirmed that the 'FAR Trading System' affects 'sustainable development,' demonstrating a 'partial mediating effect.'

Therefore, if Suwon introduces the 'FAR Trading System,' both current and future generations will enjoy better lives, and the results of a 'sustainable development city' will be realized, he projected.

Dr. Seo emphasized the need for a shift in consciousness—viewing 'floor area ratio' restricted for 'national heritage preservation' as another asset, and recognizing through the 'FAR Trading System' that 'compensation for residents' property rights losses' is equivalent to 'preservation of national heritage.'

He also recommended examining a 'Suwon-style FAR Trading System' while resetting zone designations in a unified manner. Currently, the mismatch between the 'national heritage alteration permission standards' in 'historic and cultural environment preservation areas' and the 'Suwon Hwaseong District Unit Planning Zone' creates unnecessary controversy and wasteful elements due to confusion and complexity in urban management.

Dr. Seo proposed linking with the Haenggung-dong coexistence cooperation district designation project and others: for Class 1 general residential zones in the village within the fortress walls, provide 'transferable FAR value (amount)' and 'hanok support funds' together to encourage more traditional Korean houses meeting the purpose of 'Suwon City Hanok Support Ordinance,' thereby improving residents' living conditions.